CENTRAL GOODS AND SERVICES TAX (FOURTH AMENDMENT) RULES, 2021

[Mr. M. GOVINDARAJAN]

Amendment

The Central Government, on the recommendations of the Council, made the Central Goods and Services Tax (Fourth Amendment) Rules, 2021, vide Notification No.15/2021- Central Tax, dated 18.05.2021, which came into effect from 18.05.2021.  This amendment brings amendments to-

• Rule 23 – Revocation of cancellation of registration;
• Rule 90 – Acknowledgement to the refund application;
• Rule 92- Order sanctioning refund;
• Rule 96 – Refund of integrated tax paid on goods or services exported out of India;
• Form GST REG – 21;
• Rule 138E – Restriction on furnishing of information in Part A of Form GST EWB – 1;
• Substitution of Form GST RFD – 07;
• Insertion of new form GST RFD – 01 W.

Amendment to Rule 23(1)

Rule 23(1) provides that a registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in Form GST REG-21, to such proper officer, within a period of thirty days from the date of the service of the order of cancellation of registration. 

The amendment extends the limitation of period of thirty days to such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner in exercise of the powers provided under the proviso to sub-section (1) of section 30. 

Amendment to Rule 90

Section 54(1) of the Central Goods and Services Tax Act, 2017 provides that any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed.

Rule 90 provides that the acknowledgement will be issued to the registered person on his filing of refund claim on the common portal or by manual method.  Rule 90(3) provides that if any deficiencies are noticed, the proper officer shall communicate the deficiencies to the applicant in Form GST RFD-03 through the common portal electronically, requiring him to file a fresh refund application after rectification of such deficiencies.

The amendment inserts a new proviso to Rule 90(3).  The newly inserted proviso provides that the time period, from the date of filing of the refund claim in FORM GST RFD-01 till the date of communication of the deficiencies in Form GST RFD-03 by the proper officer, shall be excluded from the period of two years as specified under sub-section (1) of Section 54, in respect of any such fresh refund claim filed by the applicant after rectification of the deficiencies.

The amendment inserts new sub sections (5) and (6) to Rule 90. 

Withdrawal of refund application

The newly inserted Rule 90(5) provides that the applicant may, at any time before issuance of provisional refund sanction order in Form GST RFD-04 or final refund sanction order in Form GST RFD-06 or payment order in Form GST RFD-05 or refund withhold order in Form GST RFD-07 or notice in Form GST RFD-08, in respect of any refund application filed in Form GST RFD-01, withdraw the said application for refund by filing an application in Form GST RFD-01W.

The following inform is to be furnished in Form GST RFD – 1-

• ARN;
• GSTIN;
• Name of Business (Legal);
• Trade Name, if any;
• Tax Period;
• Amount of Refund Claimed:
• Grounds for Withdrawing Refund Claim:;
• Filed the refund application by mistake;
• Filed Refund Application under wrong category;
• Wrong details mentioned in the refund application;
•  Others (Please Specify);
• Declaration;
• Signature of the applicant.

The newly inserted Rule 90(6) provides that on submission of application for withdrawal of refund in Form GST RFD-01W, any amount debited by the applicant from electronic credit ledger or electronic cash ledger, as the case may be, while filing application for refund in Form GST RFD-01, shall be credited back to the ledger from which such debit was made.

Amendment to Form GST REG – 21

The amendment brings changes in the instructions for submission of application for revocation of cancellation of registration.  The first instruction after amendment reads as under-

A person, whose registration is cancelled by the proper officer on his own motion, may apply for revocation of cancellation of registration, within thirty days from the date of service of the order of cancellation of registration or within such time period as extended by the Additional Commissioner or the Joint Commissioner or Commissioner, as the case may be, in exercise of the powers provided under proviso to sub-section (1) of section 30, at the common portal No application for revocation shall be submitted if the registration has been cancelled for the failure to furnish returns unless such returns are furnished and any amount due as tax in terms of such returns has been paid along with any amount payable towards interest, penalty and late fee payable in respect of the said returns.

Amendment to Rule 138E

Rule 138E provides that notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of Form GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,-

The amendment substitutes the words ‘n respect of any outward movement of goods of a registered   person, who, _’  for the words ‘in respect of a registered person, whether as a supplier or a recipient, who,’-

Substitution Form GST RFD – 07

Form GST RFD – 07, before substitution contains PART A and PART B.  In Part A  of the form the order for complete adjustment of sanction refund would be passed.  In Part B of the form order for withholding the refund would be passed.

The newly substituted Form GST RFD – 07 has also two parts viz, Part A and Part B.  In Part A the order for withholding the refund will be passed.  This order will contain the following information-

• ARN;
• Amount Claimed in RFD-01;
• Amount Inadmissible in RFD-06;
• Amount Adjusted in RFD-06;
• Amount Withheld;
• Reasons for withholding;
• Description of the reasons;
• Record of Personal Hearing.

In Part B of the form the order for release of withheld refund will be passed.  This order will contain the following information-

• ARN;
• Amount Claimed in RFD-01;
• Amount Inadmissible in RFD-06;
• Amount Adjusted in RFD-06;
• Amount Withheld in RFD – 07A;
• Amount released;
• Amount to be paid.